Published on 9/6/2017 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.05 million 10-year contingent income callables tied to three indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 6 – BofA Finance LLC priced $1.05 million of contingent income issuer callable notes due Sept. 1, 2027 linked to the worst performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7.2% if each index closes at or above its 60% threshold level on the quarterly determination date.
The notes are callable at par on any interest payment date from Sept. 1, 2018 to June 1, 2027.
The payout at maturity will be par plus the final contingent coupon unless any index finishes below its threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
The notes will be guaranteed by Bank of America Corp.
BofA Merrill Lynch is the agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income issuer callable notes
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $1,051,000
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| Maturity: | Sept. 1, 2027
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| Contingent coupon: | 7.2% per year, payable quarterly if each index closes at or above threshold level on observation date for that quarter
|
| Price: | Par of $1,000
|
| Payout at maturity: | Par plus final coupon unless final level of least performing index is less than threshold, in which case 1% loss for each 1% decline of least performing index from initial level
|
| Call option: | At par plus any coupon on any contingent interest payment date after one year
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| Initial index levels: | 2,444.24 for S&P, 1,382.23 for Russell and 3,421.03 for Stoxx
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| Threshold levels: | 1,466.54 for S&P, 829.337 for Russell and 2,052.62 for Stoxx; 60% of initial levels
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| Pricing date: | Aug. 28
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| Settlement date: | Aug. 31
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| Agent: | BofA Merrill Lynch
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| Fees: | 4.5%
|
| Cusip: | 09709TAW1
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